Managing a business enterprise is anything but simple. Regardless of whether you are a newcomer to the industry, or a seasoned professional, most of your business-related problems stem from inadequate finances. That is why it is vital to cultivate good financial habits, especially if you are in the market for a business loan.

Here are a few practices you can adopt to get that invaluable business loan as soon as possible:

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1. Manage your cash flow efficiently

The success of any business depends on the proper management of its payments and receivables. If you don’t get paid, or there is a delay in payments for services rendered, your working capital is affected negatively. So, it is better to proactively revise the payment process for your clients. Try to take precautions by performing your client company’s credit check with credit report providers like Creditsafe.

This way, you can choose to work only with those clients that are known to pay on time and in full.Similarly, develop a system for making on-time own payments You can use dedicated software like Zoho Checkout and Canopus EpaySuite for this purpose.

2. Pay your bills and EMIs on time to have a good credit score

The credit rating of your enterprise has a big impact on its stability and growth. There are certain ways to maintain and improve your credit rating, with the most important being making payments on time. As long as you make timely payments on all of your outstanding debt, you will retain a good credit score. Being creditworthy is one of the most important clauses for securing a business loan.

3. Apply for a business loan only when you need it the most

Each time you apply for credit or a loan, your credit undergoes a critical analysis, which can affect it negatively. Frequent credit checks suggest that you are struggling financially and unable to manage your business in a proper manner. Since it has become easier than ever to secure a collateral-free business loan today, ensure that you don’t apply for it impulsively. It is important to make sure that you apply for a business loan only if it Enhances your business’s growth and profitability.

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Eligibility Criteria for a Bajaj Finserv Business Loan

Business loans from Bajaj Finserv are designed specially to help growing businesses meet their financial requirements. Easy to apply for and hassle-free to avail, these loans come with several unique benefits that make them the ideal mode of business finance for small and medium sized enterprises, such as a Flexi loan facility that lets you borrow when you need, and prepay when you can. They require only a minimum of documentation to apply for, and come with easy eligibility criteria, which you can view below.

4. Analyse all business loan options

Business loans come in a variety of customizable options. It is a good idea to select a specialized loan depending on your specific needs, so that you can gain maximum benefits. For example, you can choose a line of credit facility instead of a standard business loan if you are looking for greater control over your finances or are having unpredictable needs for funds. Similarly, you can opt for a machinery loan if you are looking to buy or repair equipment, or a working capital loan if you want help in managing day-to-day finances.

5. Research your lender and consult them about your chosen loan

A personal discussion with your loan provider can go a long way in ensuring you have a pleasant and profitable loan experience. Talk to a representative about various issues like the business loan eligibility criteria, interest rate, and documents required for a business loan as well as the fees and charges associated with a business loan. This will help you understand the cost of the loan. In case you don’t immediately qualify for a loan, you can learn more about what you can do in the next 6 to 8 months to meet the eligibility criteria by having a conversation with the lender.

These tips will help you cultivate healthy financial habits, that in turn will be useful when it comes to applying for a business loan.